General Mills cuts outlook on 'slower-than-expected' volume recovery

investing.com:

General Mills (NYSE:GIS) shares fell 1.1% in early Wednesday trade after the company slashed its full-year forecast.

For FQ2, adjusted EPS was $1.25, compared to $1.10 in the same period last year, and above the estimate of $1.15. Net sales fell 1.6% YoY to $5.14 billion, missing the expected $5.35 billion.

“While we saw a slower-than-expected volume recovery in the second quarter amid a continued challenging consumer landscape, we generated bottom-line growth thanks primarily to strong HMM cost savings,” said General Mills Chairman and Chief Executive Officer Jeff Harmening. “

The company now expects a slower volume recovery in fiscal 2024, reflecting a more cautious consumer economic outlook and a faster normalization of competitive on-shelf availability.

Organic net sales are now expected to range between -1% and flat, compared to the previous range of 3-4% growth, reflecting a slower volume recovery in fiscal 2024.

Adjusted operating profit and adjusted diluted EPS are now expected to increase 4-5% in constant currency, compared to the previous range of 4-6% growth in constant currency.